Day’s theme: We’ll have a brief high that’s easily missed followed by a decline through multiple support levels.
Behavior around the high: There’s a rally into the high that offers an opportunity to open up a short position.
Behavior around the low: We’ll rally into a resistance level and then decline from that resistance level into the low.
Trade opportunities:
I’m advised to trade around a rally into the high that offers an opportunity to open up a short position.
A decline in the first half hour or hour of the day offers an opportunity to open up a long position. I would close that long position in the midst of a notable move higher around 1:45 p.m.
An opportunity to open a long position in the midst of a decline at the end of the day.
Overview
On February 9th, we’ll move higher through resistance, stay above it briefly, and then break back down through the same price level. There’s a trade opportunity to open a short position right around the open. Around the open, there’s a brief peak that’s easily missed followed by the halting of a bullish trend. We’ll then decline through key support on the scale of a one-day chart in the first half hour. That decline offers the opportunity to open up a long position. That decline will end with a fast, sudden move higher around 10:00 a.m. Somewhere between 10:00 a.m. and 11:00 a.m., we’ll meet a key resistance level on the scale of at least a one-day chart.
There will be three pokes through the same price level and a sharp decline before noon. There’s an intentional fake out or shake out of some kind midday. It looks like we’ll have a decline followed by an unexpected move higher between 1:00 p.m. and 2:00 p.m. We’ll rally into a key resistance level and then decline with consecutively lower spikes up on the way down. That decline will take us into the end of the day. Around the close, there’s possibly an opportunity to open up a long position on a one-month scale. In the post-market, we’ll have three crisscrosses through the same price level confirming a bullish trend.
Sneak Preview
We’ll open lower on February 10th. There’s an opportunity within a decline to open a long position.
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